The Fund seeks high current income exempt from regular federal income tax, with capital appreciation as a secondary objective. It invests at least 80% of net assets in tax-exempt municipal bonds, mostly lower quality: at least 75% rated BBB or lower or unrated equivalents, with a majority expected to be high yield. Up to 25% of Managed Assets may go to special situations municipal securities, including defaulted or bankrupt issuers. Any single borrower is capped at 10% of Managed Assets, the portfolio keeps a long average maturity, and leverage comes mainly from tender option bond financings and inverse floaters, up to 33 1/3% of Managed Assets.